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The Calvert Social Index®
Frequently Asked Questions

Look at the Calvert Social Index

 

What is the Calvert Social Index®?

Calvert, a leader in sustainable and responsible investing, has created the Calvert Social Index® as a broad-based, rigorously constructed benchmark for measuring the performance of US-based sustainable and responsible companies.

How is the Calvert Social Index constructed?

Calvert starts by taking the 1,000 largest companies in the U.S., based on total market capitalization, included in the Dow Jones Total Market Index (the Dow Jones TMI). Then Calvert's Sustainability Research Department determines which companies meet each one of Calvert's Signature Strategies® environmental, social and governance (ESG) criteria. The Index encompasses only those companies that satisfy all of the ESG criteria.

What are the criteria that Calvert uses to screen companies for the Index?

Index companies must meet Calvert's criteria in the following areas:

  • Environment
  • Community relations
  • Governance and ethics
  • Human rights
  • Indigenous Peoples' rights
  • Product safety and impact
  • Workplace

How does Calvert evaluate a company's ESG record?

Calvert's Sustainability Research Department evaluates each company on the aforementioned criteria employing a range of tools:

  • Publicly Available Information: We review a wide range of public information, including corporate sustainability reports, corporate regulatory filings, regulatory data (e.g., EPA and OSHA), news and business information, and NGO reports.
  • Corporate Engagement: We seek information directly from a wide range of companies to better understand how they are managing their material ESG risks and opportunities.
  • ESG Data Reports: We review data regarding company ESG performance from a number of third-party providers.
  • Advocacy organizations: We have long-standing relationships with environmental groups, consumer groups, labor unions, and human rights organizations. While we don't always agree with their viewpoints, maintaining contact with these organizations can provide us with helpful information.

What are the sector weightings of the Index?

As of 3/31/2014
Economic Sector Percentage
Information Tech 26.13%
Financials 18.68%
Health Care 16.84%
Consumer Disc. 14.94%
Consumer Staples 8.71%
Industrials 8.04%
Energy 2.25%
Telecomm Services 1.95%
Materials 1.57%
Utilities 0.88%
Cash and Cash Equivalents 0.00%

How is the Index maintained?

Each year in September, Calvert reconstitutes the Index based on an updated list of the 1,000 largest U.S. companies (as of the third Friday in June). Calvert also reviews the economic sector weightings and considers limiting the largest weighting to a pre-established level, by adjusting the weightings of individual Index components. A quarterly review is also conducted to (i) reflect share adjustments, (ii) modify any necessary components due to changes in sustainability criteria, and (iii) to review sector weightings. The Index is also reviewed regularly to reflect corporate actions such as mergers and acquisitions.

What is the weighted average market capitalization of the Index?

The capitalization of the companies in the Index will change due to market movements. As of 3/31/2014, the weighted-average market cap was $104.51 billion.

How is the value of the Index calculated?

Calvert Social Index is a market capitalization-weighted Index. This type of index measures the changes in the market value of the Index components as a whole. On the inception date (April 28, 2000), the Calvert Social Index's base value was set to 100. The value of the Index is updated every business day.

How many companies are in the Index?

As of 3/31/2014, there are 699 companies in the Index. This figure may change over time as companies merge or there are changes in Calvert's sustainability criteria.

Why would a company be added to or removed from the Index?

There are three reasons:

  • Annual reconstitution
  • The stock may disappear from the universe due to a corporate event such as a merger or acquisition
  • The issuing company may no longer meet our social screening standards

 

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